This is a possible hybrid maintenance proposal made by my apartment and my questions and suggestions on the model. I am writing this because everyone who had gathered for last meeting, including association members (I am also one) had asked me to come up with my plan with details and put for approval with everyone. Please provide feedback and feel free to contradict my views.

Even though this is part of the novel, this note itself can be a good read for anyone interested in maintenance calculations. 

After the initial three months of a flat collection based square feet model, most of the people within the core association decided to go with a hybrid model as below:

• A ratio for fixed (flat) to variable (square-feet based) was derived as '35% to 65%' as follows: average square feet was calculated as x. Then assumed that people below average (which was 65%) wanted square feet based model and people above average (which was 35%) wanted fixed model. Since the basis for the division is again based on square feet, we should be calling it as square-feet based hybrid model.

• Since land owners were not in favor of square feet model, they alone were put into a flat model. The model however is ok now as Since land owners had 52 flats which included larger and smaller flats and once everything is added, it comes almost the same. In fact, land owners slightly pay higher than if they had to follow a square feet or hybrid model (based on calculation by treasurer). 

  • This was justified as it was very difficult getting money from land owners and increasing the amount might result in no payment from their side. This has reasons including the fact that land owners themselves has maintenance services companies.

There was considerable difference between the lowest and highest amounts paid by different flats, upto Rs. 700. Some bigger square feet flat owners feared that the expense might shoot up later for them with this model when some emergency situations like water tankers and all are required. 

My Questions

So, here are my questions:

1. Currently it might be ok to have a fixed plan for land owners only based on their total collection amount.

   • However, what if they sell lots of their smaller flats and keep only the bigger one? 

2. One of the association member (other than me) confirmed that according to the rules of Society Act under which the apartment is registered, you have full flexibility to have different collection models for land owners and regular owners.

   • However, what if land owners come later asking the reason for different collection models? 

3. Why can't we have a hybrid model considering the approximate cost of things as is done in most other places where hybrid model is followed?

   • In most of the real hybrid model implementations, that I could find through a Google search, were following a different approach, most of them deriving from the Maharashtra law (even other states which does not have a proper model):

     • Expenses and utilities shared by all are considered on a per flat (PF) basis. Security usually fits here as mostly resources are decided based on approximate number of flats. 

     • Expenses specific to each apartment size are considered on per square-feet model. For example, water usage comes here in some hybrid models. But few others do it based on a meter for each house, as water will be one of the most precious resource for every house.

   • However, what if we are not able to come to a conclusion on what items can vary based on your house size.

4. Maintenance is collected for running the society, and to pay the expenses required for providing the facilities that we use. If (and only if, and is a matter to discuss) facilities are same and some people are paying more, then will some people be paying less for the facilities thay are availing? 

   • However, instead of a blind fight, we can think calmly of any expenses that will vary based on square feet size. Moreover, what if people paying more ask for more share of facilities, or more premium services (see point 3 above and owner comments).

Note: In my previous apartment, such discussions finally resulted in keeping separate meter for every house for water usage and all the remaining things were kept as flat (fixed).

Solution Opinions

My personal choice is fixed (flat) model with everyone paying 2500 flat. Or even ok with a proper hybrid model, but I am open for opinions from others. I will be listing all the opinions provided transparently here.

My personal choice is because of following reasons:

1. Square-feet model may hurts the lesser number of 3BHKs more and they believe they are not getting any benefit extra.

2. Square-feet based Hybrid model, is again based on square feet. Calculation of 35-65 is based on square feet and has the same problem as in square feet model.

3. Standard Hybrid model (as per any other successfully implemented model.) I am ok with this as well if we can put valid points and convince everyone.

4. Land owners (52 flats) are already going with the flat model, and everyone will have to pay a standard maintenance fee of Rs.2500, and is similar to other flats in the locality such as Innovative Petal, Manasarovar and SLN Paradise).

5. Complex calculations will need a person who is from financial background. When treasurer has resigned on 15th september, I have not seen a single person coming to replace him. Even if we are able to convince him to continue, what if he resign again for some other reason. This is not personal to him, but feel like having a simple model without a single person dependency is scalable. What is he decides to buy a newer one and sell this apartment. In software design, which is my profession, we believe in the KISS principle, which says Keep it Simple and Stupid. Again, this is not personal to the treasurer, as in fact he doing the best anyone can do, considering the effort and time he is spending, and I think no one in this apartment has a different opinion.

Owner comments through mail

I will be listing all the opinions provided transparently here. Please send to my mail id on comment below directly after logging in and comments are not moderated. You may use an anonymous name if you don't want to display you name in public, but in case of a dispute, we will have to share the actual person names in the meeting. Anyway if you are sharing your views in the meeting, you cannot be anonymous. At least to the public, you will be anonymous.

• (owner through watsapp) - Even if 25 3BHKs pay 300 extra on average than the average square feet, it is still much lesser than 10K, and is not worth the fight.

• (owner in meeting) - What are the extra facilities I am getting for paying the extra money? Note: Difference between least and highest maintenance fee was close to 700 in the first sheet.

• (owner through watsapp) - I am ok for the proposed hybrid model now, but in case of any issues like water shortage, the expenses for one set of people can increase exponentially. 

• (owner in meeting) - If two 3BHK was not there, there would have been more 2BHK, and hence we would have got more maintenance. So they have to pay more. Counter argument was that, ok we can pay, but will 3BHK get 1.5x DG cut off limit, 1.5x vote share and other benefits more than 2BHK. 

Conclusion

A meeting was help on September 18 2016, where everyone got opportunity to put across their points and it was finally decided to follow a flat model. Everyone including land owners will pay a flat amount, until there is a water shortage problem. In case of a water shortage problem, we will review the plan and may go for a meter approach. Even many of the smaller flat owners supported the decision, without which it would have never decided so.

Read more in next chapter.